Suppose a country's debt rises by 6% and its GDP rises by 5%. What happens to the debt-GDP ratio?
A) It rises if there is a budget deficit that period.
B) It falls.
C) It rises.
D) There is insufficient information to answer the question.
Ans: C) It rises.
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Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Then desired investment equals
A) $20 billion. B) $30 billion. C) $35 billion. D) $45 billion.
The United States recycles a greater portion of its garbage than Japan does
a. True b. False
Implicit costs are costs that do not require an outlay of money by the firm
a. True b. False Indicate whether the statement is true or false
At Bert's Bootery, the total cost of producing twenty pairs of boots is $400 . The marginal cost of producing the twenty-first pair of boots is $83 . We can conclude that the
a. average variable cost of 21 pairs of boots is $23. b. average total cost of 21 pairs of boots is $23. c. average total cost of 21 pairs of boots is $15.09. d. marginal cost of the 20th pair of boots is $20.